Census Finds RI has Highest Poverty Rate in New England

The U.S. Census Bureau’s latest data contain mixed signals about the state of Rhode Island’s economy. The median income climbed by double digits but the state still has the highest poverty rate in the region.

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While Rhode Island’s median household income climbed 14 percent from 2011 to 2012, the state remained stuck with the highest poverty rate in New England. Thirteen-point-six percent of all residents are living below the federal poverty level. Second is Maine at 12.8 percent.

Kate Brewster, director of the Economic Progress Institute, said she was pleasantly surprised by the median income data but she cautions against reading too much into it.

“While that certainly is significant, it still doesn’t bring us back to the median household income that we had in 2007 before the economy bottomed out,” said Brewster. “So it’s good news but we still aren’t back to where we started from when the recession began.”

The latest Census data also shows the number of Rhode Islanders without health insurance remains unchanged at 14.3 percent. The national average is 18 percent.

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Rhode Island Senator Jack Reed is supporting a bill that would increase the federal minimum wage over the next three years.

The federal minimum wage is currently $7.25. The so-called “Federal Wage Act” would increase that wage by 95 cents annually until it reaches $10.10 by 2015.

However the buying power of minimum wage has decreased significantly, and the new boost may not be enough in Rhode Island, says Kate Brewster, the executive director of The Economic Progress Institute.

A University of Rhode Island economics professor who tracks the state’s economy every month finds it was in good shape for the month of July.

Professor Leonard Lardaro says nine of 12 indicators he tracks are in positive territory. The only lagging indicators are government employment, the size of the labor force and new claims for unemployment.

Overall, Lardaro said we’re heading into the second half of the year in a fairly strong position.